Investment Q&A

Q: If interest rates were to flatten or decrease what is a good Canadian bond fund to buy with a good yield.

Q: So BMO and TD won't allow me to purchase CASH (horizons hisa) .BMO say they have their own (HISA) product that I can buy . Would these be as acceptable as CASH (Horizons product).

Q: Can you give your opinion on the lion financing deal announced today?

Q: Scotiabank Canadian Low Volatility Index (2 year) Minimum Guaranteed Return 4%, Maximum Full Term Return 11%. A friend has it, she can't explain how it works.

Could you please explain to a person like myself who cannot understand how someone would get 11%, would it still take 2 years to get the 11%?

What is the minimum amount to be able to purchase this?

Are these things something knowledgeable financial individuals like yourself might buy?

Thank you.

Q: For our current market conditions what Canadian listed bond ETFs would you choose for the bond portion of a diversified portfolio?
Thank you.

Q: Good morning,

With bond rates moving higher can you suggest your top 3 bond etf's to gain exposure at a low cost. Would holding these in a registered or cash account be best? As always thank you for your time

Q: would ZFM and/or IEI bond etf be a good addition to balanced portfolio as substitute or addition to broad based bond etf ?

Q: I am down significantly on these ETF's, down 17% with distribution included on ZPR with it representing 3.6% of my portfolio and down 7% on ZLI or 0.8% with distribution with ZLI representing 3.1% of the portfolio. These were added prior to the rising interest rate environment with the desire for income. Given the unit price have declined so significantly on ZPR (24%), would it be a good move to average down on this ETF in this interest rate sensitive environment? At least the ZPR is mainly held outside registered accounts so the significant capital loss could be used to offset other gains if I was to sell? What would you do with these funds at this point? Hold, Sell, Average down or...?

Q: I have 2 unregistered accounts and hold too much money in HISAs. I would like to invest more in Horizon's total return ETFs that pay no distributions. I have been looking at HBB but the chart looks nothing like similar Canadian bond etfs. Today, July 10th, HBB is trading at the same level it did 5 years ago but XBB is 13% lower today, VAB 13% lower and ZAG 15.2% lower. Can you explain this large difference? Should HBB now track in a similar way to XBB? Thanks!

Q: Hi 5iResearch Team,

My question is general. Recently I came across an article on Bond-reform proposal by Federal Government. In which it was mentioned by a group of institutional investors that this means higher interest rates for companies, provincial governments and other bodies that issue bonds. If that is right then will not mortgage cost for the home owners will go up?

I will appreciate if you could give some info on this money lending cycle.
 
Thanks

Piyush

Q: Can I please have your opinion on whether bond ETF's might be less forward looking "stocks" than a regular equity? It almost seems to me that they react to interest rate changes after they are announced versus anticipating them the way the rest of the market would anticipate an expected change. Are bond ETF's mostly a retail investor thing, or are there lots of institutional "smart money" participants as well?

Q: In ref. to TK's question July 10 I am curious why you would suggest ZWB over HMAX for an income-based portfolio? I looked hard at both, for the same reason as TK, and chose HMAX. Just counterchecking my decision. Thanks, James

Q: What are the main risks of this debenture? What will happen if the company’s stock price is lower or under the conversion price?

Thanks,
Lipng

Q: What is your current opinion of the MFS Charter Income Trust as a defensive and income instrument?

Q: I wish to find a place for some cash. I am not entirely clear on some details for HSAV: the current trading price is around $106,60.

Of course, there are no distributions; What do you calculate the effective yield to currently be?

My trading platform suggests NAV is $106.30, so there is a premium being paid at the current price. What effect will that have on the yield? And what effect when I come to liquidate the holdings?

Last, if you see HSAV a not that good a place to deposit, what other place(s) would be good to hold some cash? BMO HISA is currently offering 4.6%

Many thanks

Q: Supposing that an investor had three registered accounts of roughly equal size that they wanted to change from equity ETF's to a fixed income allocation for their portfolio, and these accounts would have to be converted to RIF's in 6 years. Let's also assume that we get one or two more small rate hikes this year, then interest rates flatten and begin to come down slowly over the following several years. Which of three options would you choose on a risk/reward basis? 1. Just hold money market funds currently paying 4.5%+ 2. Barbell XSB and XLB using two accounts, and put XBB (or ZAG) in the third (avg. yield close to 3 %? with potential cap. gains) 3. Put TLT in all three, yield close to 3%? maybe highest potential cap. gain? With the BOC policy rate going up close to 5 points since the start of 2022 the bond funds above fell anywhere from 10%+ to 30%+. Does that imply that if the BOC rate went back down 2.5% that they would rise 5%+ to 15%+, or you can't make that kind of straight line assumption? Maybe there is a way better option, but I don't really want to tie up funds in GIC's and don't want to try to pick individual bonds either. I also considered something like PSA but no cap gain upside there and the money markets probably pay as much interest or more. Thanks for your thoughts.

Q: you opinion on rbf5280

i am a little light in the hi yield space

Q: I have seen an offer to a friend from Schroders for a Canada Bond paying 8.18%.

The document states that there is a 1 year buy back

The buy price is $108 and the buy back price is $108 after the 1 year term

The purchase is for 925 units

Interest is paid quarterly, $2042.95

Brokerage fee is $249.75

How are they generating this return from "Canada Bonds" to clients when Canada Bonds are at best 5%?
Also how can they set a buy back price? It looks like a GIC to me but there are no GIC's that pay 8.18%.

Joe

There is a fee for admi

Q: Hi, I have heard about short term bonds providing high yields. I don't have much experience in this area. Could you recommend a way to add this into my portfolio?

Thanks
Paul

Q: Hello Team,

What are your favourite etfs for high interest savings account for both CAD and USD?

Thank you!